Everything You Should Know About The Real Cost of Selling Property in Nigeria

Say you found a buyer who agrees to pay N100 million for your property. You’re excited, but then reality hits. Between taxes, agent fees, and legal costs, your actual take-home could be closer to N85 million. That N15 million gap? It’s what every Nigerian property seller knows as the friction cost, and it’s easy to underestimate.

Ignoring it can leave you underpricing your property or walking away with less than you expected. That’s where ATEOS Homes comes in. We help sellers structure their exit strategically, ensuring your asking price accounts for all deductions so you keep the profit you deserve.

In this guide, we break down every cost you can expect when selling property in Nigeria, highlight the common traps to avoid, and share insider strategies to maximize your net proceeds. By the end, you’ll know exactly what to expect and how to walk away with the full value of your property.

The Key Players Eating Into Your Sale

So you’ve found a buyer, these are the key players making the difference between a profitable sale and a disappointing one, in your sale:

1. The Government: The first deduction comes from taxes and official fees. Capital Gains Tax (CGT) applies to the profit you make on the sale, typically around 10%, and it’s non-negotiable. Stamp duties and registration fees also apply, and these vary by state. In Lagos, for example, the Land Use Charge and Governor’s Consent can add millions to your cost, while smaller towns have lower levies. Ignoring these can make your expected profit evaporate quickly.

2. Real Estate Agents: If you use an agent to find a buyer, expect to pay their commission. Typically, 5–7% of the sale price, this fee might seem small at first glance, but on a N100 million property, it could be N5–7 million. Agents do bring buyers and handle negotiations, but it’s essential to clarify fees upfront to avoid surprises at closing.

3. Lawyers: Legal fees cover contract drafting, due diligence, title verification, and finalizing the sale. Lawyers ensure your property is sold cleanly, protecting you from disputes down the line. Fees vary by firm and property value, but skipping this step is a gamble few sellers can afford.

4. Miscellaneous Costs: Other expenses often overlooked include property valuation, surveyor fees, minor repairs, and marketing costs if you self-list. Each may be relatively small on its own, but together they chip away at your net proceeds.

Every seller who underestimates these costs risks leaving a significant portion of their hard-earned profit on the table. Understanding who takes a cut is the first step, but numbers speak louder than descriptions. In the next section, we break down these costs using a real-world example so you can see exactly how taxes, fees, and commissions add up.

Cost Breakdown: How Much You Really Pay

Let’s put the key players into numbers. Imagine your property sells for N100 million. To calculate the tax liability accurately, we must assume an original purchase price, let's say N60 million, which gives you a Capital Gain (Profit) of N40 million.

Here is the realistic breakdown of what leaves your pocket before the transaction closes:

• Government Fees: Tax is calculated strictly on the N40 million gain. At 10%, your Capital Gains Tax is N4 million. Additionally, if title perfection (Governor’s Consent) is required to facilitate the sale to a corporate buyer, budget another N3–5 million for state fees.

• Agent Commission: Brokerage fees are calculated on the gross sale price. At the standard 5–7%, N5–7 million is deducted immediately upon closing.

• Legal Fees: You require independent legal representation to review the Deed of Assignment and protect your interests. Seller’s legal fees typically range from N1–2 million, depending on the firm.

• Miscellaneous Costs: Valuation, survey verification, minor repairs for market readiness, and marketing expenses typically add another N500,000 to N1 million.

Total deductions in this scenario run between N14 million and N19 million. This leaves you with a net take-home of roughly N81–86 million.

Hidden Traps Sellers Often Overlook

Even when you tick all the boxes on paper, there are subtle pitfalls that can derail a sale or drain your proceeds if you’re not careful.

• Document and Title Issues: Many properties sold in Nigeria come with messy paperwork: missing or forged title documents, unregistered survey plans, or a lack of proper consent under the Land Use Act. If you don’t independently verify every document at the Land Registry (or Surveyor‑General’s office), you risk selling a property whose ownership isn’t legally transferable, putting both you and your buyer at risk. 

• Undisclosed encumbrances: Some lands still have unsettled obligations: unpaid levies, disputed inheritance (for “family lands”), multiple claims, or community ”omo‑onile” issues. 

• Overreliance on informal Agents or Brokers: Unlicensed or unverified agents can mislead sellers (or buyers), inflate fees, fail to disclose full costs, or disappear mid‑transaction. 

• Poor property presentation or unrealistically low listings: Some sellers cut corners on repairs, documentation, or proper valuation, which can result in undervaluation, delayed sale, or being forced to drop price under pressure. 

Now you know what to look out for. We’ll show you actionable strategies to structure your sale, minimize deductions, and maximize the net proceeds you actually walk away with.

Insider Strategies to Maximize Net Proceeds

Selling through a developer in Nigeria comes with opportunities. At ATEOS Homes, we recommend these strategies to make every naira count:

1. The Allowable Expense Strategy: Did you know that agency and legal fees are tax-deductible? When calculating your Capital Gains Tax, ensure you deduct every cost incurred in the sale (and the original purchase). This lowers your taxable profit and keeps millions in your pocket.

2. Perfect Your Pre-Sale Title: Instead of selling a property with "Deed of Assignment (In Process)" for N80 million, spend the money to perfect the title first. A perfected title (Governor's Consent) allows you to sell to corporate buyers and mortgage banks, instantly jumping the property value to N100 million.

3. The Net Listing Option: In some cases, you can agree on a "Net Price" with your agent. You tell them: "I need N90 million net. Anything you negotiate above that covers your fees." This protects your bottom line and incentivizes the agent to push for a higher price.

These strategies help sellers maximize net proceeds while avoiding common traps in transactions.

Take Control of Your Sale

Now you understand the stakes. Don’t leave your outcome to chance; take the right decisions at every step. Or partner with ATEOS Homes to handle the heavy lifting for you, ensuring a smooth, profitable sale guaranteed. The choice is yours.